Free Trial

EGBs underperform as the markets re-price ECB expectations

BONDS

Core fixed income has been under pressure this morning with EGBs underperforming Treasuries as the market continues to price in a greater likelihood of larger hikes by the ECB following a Reuters sources story released on Friday afternoon (as well as Powell's hawkish Jackson Hole comments).

  • The German curve has moved in a relatively parallel move, with Schatz and 10y Bund yields up around 13bp on the day. Peripheral spreads have barely moved today in spite of the ECB re-pricing.
  • TY1 futures are down -0-20+ today at 116-30 with 10y UST yields up 7.4bp at 3.117% and 2y yields up 6.8bp at 3.468%.
  • Bund futures are down -1.73 today at 148.23 with 10y Bund yields up 13.1bp at 1.517% and Schatz yields up 13.1bp at 1.099%.
  • BTP futures are down -1.48 today at 120.02 with 10y yields up 14.0bp at 3.831% and 2y yields up 17.7bp at 2.084%.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.